THE PENTAGON, DERBY, DE21 6DA LONG INCOME LEISURE INVESTMENT OPPORTUNITY

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1 THE PENTAGON, LONG INCOME LEISURE

2 INVESTMENT SUMMARY + Derby is a principal city within the East Midlands with a population in excess of 700,000 within a 30 minute drive time + Prime, purpose built health and fitness club incorporating best in class facilities over 46,221 sq ft (4,294 sq m) GIA + Prominently located at the junction of the A61 and to the east of Derby City Centre + The property is Nuffield Health s sixth top performing gym facilities (out of 111) by EBITDA. + Let to Nuffield Health (Co. No.: ) on an FRI lease to January 2043, providing 25 years term certain + 5 yearly rent reviews in line with the Consumer Price Index (CPI) subject to a cap of 3.50% and a collar of 1.00%, compounded annually + A Long Leasehold interest for 128 years from Derbyshire County Cricket Club Limited at a peppercorn rent from 3rd April Passing rent of 540,000 per annum equating to per sq ft + Offers in excess of 9,200,000 (Nine Million, Two Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 5.50%

3 DERBYSHIRE COUNTY CRICKET CLUB NOTTINGHAM ROAD DENBY DISTRIBUTION SAWLEY PARK SPEEDY HIRE MERCEDES TRAVELODGE A61 SIR FRANK WHITTLE WAY MINI A61 BRIAN CLOUGH WAY KWIK FIT PEUGEOT MOTORPOINT EUROPCAR STORAGE KING VAUXHALL

4 LEEDS LOCATION Derby is the commercial centre of Derbyshire and forms the third largest conurbation in the East Midlands after Nottingham and Leicester. The City of Derby is located approximately 42 miles (67 km) north-east of Birmingham, 16 miles (26 km) west of Nottingham and 30 miles (48 km) to the south of Sheffield. Derby benefits from advantageous transport links being located 7 miles (11 km) to the west of Junction 25 of the M1, accessed via the to the east. To the west, the A50 links Derby to Stoke-on-Trent and Junction 15 of the M6 motorway, whilst to the south-west, the A38 affords quick access to Birmingham. Derby occupies a key location in the national rail network, the mainline railway station lies within 0.7 miles (1 km) to the south of the property and direct trains run frequently to Birmingham New Street and London St Pancras with a journey time of approximately 35 minutes and 1 hour 30 minutes respectively. LIVERPOOL LIVERPOOL AIRPORT A44 CHESTER M56 A41 SHREWSBURY M6 M54 WORCESTER MANCHESTER AIRPORT STOKE BIRMINGHAM MANCHESTER M5 PEAK DISTRICT B HAM AIRPORT M42 M6 A38 SHEFFIELD M1 DERBY EAST MIDLANDS AIRPORT COVENTRY M40 PROMINENT LEISURE INVESTMENT A1(M) OPPORTUNITY A1 NOTTINGHAM LEICESTER M1 A14 NORTHAMPTON PETERBOROUGH A47 A1(M) A1 East Midlands airport is located just over 10 miles (16 km) to the south east of the city and serves over 4 million passengers per year to a wide range of destinations throughout the UK and Europe. DRIVE TIME FROM DE21 CATCHMENT HOUSEHOLDS 0-10 MINUTES 146,080 61, MINUTES 300, , MINUTES A , ,208 A6 ALFRETON A38 A60 The city serves a large and moderately affluent surrounding population of approximately 573,000 people within the primary catchment and 716,000 people within a 30 minute drive time of the property. Analysis of this demographic indicates a moderately wealthy, mobile and economically active population, with home and car ownership and employment levels higher than the national average. ASHBOURNE RIPLEY A38 ILKESTON M1 NOTTINGHAM UTTOXETER A50 DERBY LONG EATON A518 A50 A515 A38 BURTON UPON TRENT M1

5 FORD ST DUFFIELD RD DARLEY ABBEY ST BURTON RD A601 NORMANTON RD RIVER DERWENT 4 A601 Derby MA NSFIELD RD ALFRETON RD EAGLE CENTRE A601 OSMASTON RD LONDON RD A61 SIR FRANK WHITTLE WAY (A61) NUFFIELD HEALTH DERBY STATION 1 / Meteor Centre 2 / West Meadows Industrial Estate 1 3 A6 HAMPSHIRE RD DERBYSHIRE COUNTY CRICKET CLUB 2 NOTTINGHAM RD PRIDE PARK A6 3 / Racecourse Park 4/ Derby City Centre MAX RD SITUATION The property is situated some 0.7 miles (1 km) to the north east of Derby City Centre and forms part of the Derbyshire County Cricket Club (DCCC) site. It occupies a prominent position on the Pentagon Island intersection which is where the and A61 dual carriageways meet. The east-west dual carriageway links the city centre with Junction 1 of the M1 Motorway. The property is accessed directly via the A61 Nottingham Road with nearby occupiers including a 100 bed Travelodge hotel, Aston Martin, Stratstone Mini, Euro Car Parts and the 14,000 seat capacity DCCC. PROXIMITY TO POPULAR LOCATIONS miles Pride Park 0.5 Derby City Centre 0.7 Meteor Centre 1.2 Nottingham 14.6 Birmingham 41.9 London 131 PROXIMITY TO ROAD NETWORKS miles A A A6 3.7 M1 (J25) 7.4 A50 7.4

6 DESCRIPTION The property comprises a modern high quality, purpose built health and fitness club of steel framed construction, with metal clad elevations, beneath a curved standing seam insulated metal roof. The principal internal feature of the building is the large glazed atrium over the pool and galleried balcony over the reception area. At first floor level, there are extensive gym areas with a range of resistance and free weight training equipment, two dance studios and ancillary offices. The basement area incorporates pool plant, as well as a storeroom and workshop. Plant facilities also exist in the roof void, including air conditioning chiller units. The club offers a full range of facilities including: + 25 metre pool, with separate childrens pool + Spa including a steam room, solarium and sauna areas + High quality ground floor male and female changing rooms + Fully supervised, OFSTED-approved crèche facilities + Members Lounge + Dedicated NuCycle Studio + Car parking for over 220 vehicles

7 ACCOMMODATION In accordance with RICS Code of Measuring Practice (6th Edition), Buchanan Bond understands the gross internal floor areas (GIA) to be as follows:- SQ FT SQ M Ground Floor 23,255 2,160 First Floor 20,936 1,945 Basement 2, Total 46,221 4,294 The property occupies a site totalling 1.41 hectares (3.49 acres) reflecting a site coverage of circa 17%. Terraces TENURE COUNTY CRICKET GROUND L Twr The property is held on 128 year leasehold interest from Derbyshire County Cricket Club Limited from 3rd April 2000 until 2nd April 2128 at an annual peppercorn rent. El Sub Sta TRAVELODGE HOTEL ESS L Twr Terraces L Twr DERBYSHIRE COUNTY CRICKET CLUB Pavilion L Twr TENANCY The property is let on a full repairing and insuring terms to Nuffield Health for a term of 25 years from 24th January 2003 until 23rd January At expiry, there is a reversionary lease to Nuffield Health from 24th January 2028 until 23rd January Both leases are subject to 5 yearly upward only rent reviews linked to CPI (Consumer Price Index), collared and capped at 1.00% and 3.50%, compounded annually. D Sir Frank Whittle Road A61 NUFFIELD HEALTH 1 to 1 2 Park View House The current rent passing is 270,000 per annum exclusive up to and including 23rd January 2019 and then reverts to 540,000 per annum from 24th January 2019 up to and including 23rd January The vendor will top up the rent in order that the investment produces 540,000 per annum. MINI El SubSta Path and Cycle Track

8 TENANT COVENANT Nuffield Health is the largest not-for-profit healthcare provider in the UK. Established in 1957 the charity operates 31 Nuffield Health Hospitals and 111 Nuffield Health Fitness & Wellbeing Gyms. In 2016, Nuffield Health acquired 35 Virgin Active clubs, one of which being the subject property. Nuffield Health Derby Hospital is located just 15 minutes drive time from the subject property. As part of the Nuffield Group, physiotherapy patients from the hospital are provided with free short term gym memberships for their rehabiliation. Nuffield Health has a D&B rating of N1, reflecting a minimum risk of business failure. Although the financial figures below show minor profits, Nuffield Health are a registered charity and state our success is defined by our ability to improve people s health. NUFFIELD HEALTH 31/12/2016 (000s) 31/12/2015 (000s) 31/12/2014 (000s) Sales Turnover 839, , ,800 Profit / (Loss) Before Taxes 2,600-3,900 3,000 Tangible Net Worth - 26,200 48,700 74,400 ENVIRONMENTAL CONSIDERATIONS Our City Our River is a Derby City Council project with a budget of 95m to reduce flood risk to properties and to rejuvenate areas of the City on the banks of the River Derwent. The Our City Our River project includes plans for defences which would protect many areas against a 1 in 100 year chance of occurrence and provide an ideal opportunity to release the economic potential of brownfield sites along the river frontage. Further information is available.

9 VAT The property is elected for VAT and it is intended that the transaction is treated as a Transfer of a Going Concern (TOGC). EPC The Energy Performance Certificate (EPC) rating for the Property is E-103. The full report is available upon request. PROPOSAL Offers in excess of 9,200,000 (Nine Million, Two Hundred Thousand Pounds), subject to contract and exclusive of VAT A purchase at this level reflects a Net Initial Yield of 5.50%. Assuming Oxford Economics CPI forecasts and purchaser s costs of 6.69% this will show the following reversionary profile (as at May 2018); % % % % FURTHER INFORMATION Should you require further information or wish to view the property please contact either:- STEVEN POLLACK T: M: E: steven@buchananbond.com JONATHAN SKERRY T: M: E: jonathan@buchananbond.com

10 MISREPRESENTATIVE ACT 1967 & DECLARATION Buchanan Bond Real Estate Limited, for themselves and for the vendors of this property whose agents they are, give notice that: i) The particulars are set out as a general outline only for the guidance of intending purchasers, and do not constitute, nor constitute part of, an offer or contract. ii) All descriptions, dimensions, references to condition and necessary permission for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements or representations of fact and must satisfy themselves by inspection or otherwise as to the correctness of each of them. iii) No person in the employment of Buchanan Bond Real Estate Limited has any authority to make or give any representation or warranty in relation to this property. May Buchanan Bond Real Estate Limited 3-5 Barrett Street, St. Christopher s Place, London W1U 1AY